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ControlAn electronics firm is currently manufacturing an item that has a variable cost of per unit and a selling price of per unit. Fixed costs
ControlAn electronics firm is currently manufacturing an item that has a variable cost of per unit and a selling price of per unit. Fixed costs are Current volume is units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of Variable cost would increase to and the selling price would be revised to with the expectation that the volume would be units as a result of a higherquality product.
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